Local control returns to Al Tech Loan Program

The Al Tech Loan Program, named for a former Watervliet steel mill that paid back a federal government bailout, will be under local control, Albany County officials announced at a press conference.

After some misuse of funds to build an ice hockey rink, the actual processing of checks to loan applicants was moved to the New York State Job Development Authority in New York City. The change sometimes delayed checks by months, according to several people at this morning’s announcement.

Since the problems more than a decade ago, the fund has run smoothly, with virtually no defaults, according to officials. While “one or two” of the 60 current outstanding loans are in trouble, officials said, they’re working with the borrowers.

The changes announced this morning will give the Albany County Business Development Corp. control over the funds, while the Albany-Colonie Regional Chamber of Commerce will continue to manage the program. The maximum loan size has increased to $500,000 from $300,000.

Today’s announcement was held at the headquarters of Albany Molecular Research Inc., one of the early beneficiaries of the program.

The fund was created in 1976 with money from the U.S. Department of Commerce.